Best opportunity: Midas CEO comments on TBC deal
Following news that Midas will be acquired for an estimated US$310 million, company CEO Alan Feldman described the deal with TBC Corporation as being “the best opportunity for Midas to go forward.” Speaking to the Chicago Tribune newspaper, Feldman described the acquisition as a “strategic, compelling marriage of two leading brands in the automotive repair aftermarket.
“Tyres are an important part of our business and growing, and have tremendous opportunity,” he continued. “It broadens our product lines, should get us better pricing (and) helps us become more competitive in the tyre category.” He also said the merger helps TBC by expanding its reach for tyre distribution.
Midas shares rose 27 per cent per cent on 13 March following the news, closing near a two-year high at $11.44 per share. That puts the price near TBC’s buyout offer price of $11.50 per share. Under terms of the merger agreement, TBC will offer to buy Midas shares no later than 28 March. The deal is expected to close by the end of the second quarter.
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